National Bank orders banks to stay on debt for an additional 6 months, who has the right

 

Mrs. Rung Mallikamas, Assistant Governor Financial System Stability and Corporate Strategy The Bank of Thailand (BOT) said that if you look at SMEs with credit limit of not more than 100 million baht, which entered the debt accommodation scheme under the Royal Decree on providing financial assistance to enterprises that were affected by the outbreak. There are approximately 1.05 million accounts or total debt of 1.35 trillion baht, divided into 400 billion baht of state bank receivables and 9.5 billion baht of commercial bank receivables.

Initially, the Bank of Thailand issued an announcement for financial institutions to maintain the situation of classification of SME borrowers until the end of 2020 (Stand still) so that the debtor can spend the rest of the period. After the expiration of SME debt suspension measures

From October 22 until the end of the year. In negotiations to adjust payment terms with financial institutions This will save these debtors from becoming bad debt. And to increase incentives for banks to speed up the process of adjusting repayment terms

However, if the debtor is still unable to return to pay the debt normally Or maybe partially paid Commercial banks continue to have measures to help borrowers. Until it comes back to have enough income to return to repay the debt, such as adjusting the terms of payment as appropriate for each debtor. In order not to become a NPL, and other appropriate measures may be taken, such as reducing interest rates for credit card and personal loans, etc.

For cases where the debtor cannot go Or the income has not returned Commercial banks are able to suspend their debts on a case by case basis for up to 6 months initially from the end of 2020 until the end of June 2021.

According to the BOT's discussions with commercial banks, about 94% found that more than half of them have the potential to return to pay their debts. So people are worried that we might see the debtor fall off a cliff At the end of the project There are many people who cannot go on. May not be like that And it is expected that there will not be a large debt default in a short time or a Cliff effect after the debt suspension measures are expired.

Thank you for coming from: Krungthep Business